Most people think getting one insurance policy means they’re covered for everything. Buy insurance, problems solved.
Wrong. A life insurance policy takes care of your family after you’re gone. Health insurance helps when you’re alive and dealing with medical bills.
You actually need both. Here’s why that matters.
What a Life Insurance Policy Actually Does
A life insurance policy pays money to your family when you die. Nothing more, nothing less.
You pay approximately 15,000 rupees annually. If you die, your family gets maybe 1 crore. This money keeps them going when your income stops.
Think about it – bills keep coming even after you’re gone. Rent doesn’t pause. Kids still need school fees. Loans want their monthly payments. Groceries cost money.
Your family needs cash to survive all this. A life insurance policy hands them that cash. They pay off debts. Handle education costs. Keep up with daily expenses. Your death becomes less of a financial nightmare for them.
Benefits of Health Insurance in India
Health insurance does something totally different. It covers your medical bills when you fall sick.
Hospitals in India charge serious money. No insurance means paying everything yourself. One bad illness wipes out whatever you’ve saved. You start borrowing. Selling things you own. Taking loans from banks or relatives. Your money situation falls apart fast.
The benefits of health insurance in India save you from this mess:
- Your hospital bills get paid: Room rent, what the doctor charges, surgery, medicines, medical tests – all covered.
- Cashless treatment at hospitals: You walk in, get treated, walk out. The insurance company settles everything with the hospital directly.
- Expenses before and after hospital: Costs you rack up a few days before admission and after discharge get covered too.
- Procedures that don’t need an overnight stay: Treatments done in hospitals, but you go home the same day, still count.
- Rewards for staying healthy: Don’t make claims for a year? Your premium drops or your coverage goes up.
These benefits keep your savings safe when health problems hit.
Why One Policy Doesn’t Replace the Other
People mess this up all the time. They figure health insurance handles everything. Or they think a life insurance policy covers all bases.
Neither is true. These two protect you from completely different problems.
Health insurance helps while you’re alive
You get sick. Need treatment. Hospital bills start piling up. Health insurance pays those bills. You get better without losing your money.
But here’s what health insurance won’t do – give your family money after you die. It only handles medical costs.
A life insurance policy kicks in after you die
You die suddenly. Your salary stops coming. The family has no income. A life insurance policy dumps a big payment into their account. They survive on this for years.
But a life insurance policy won’t pay hospital bills while you’re living and breathing. It only works after death.
See how they’re different? Each handles its own problem. You need both to stay fully protected.
Real Life Shows the Difference
Example 1: Had health insurance, skipped life insurance
Rajesh got health insurance but no life policy. Had an accident. The hospital bill hit 8 lakhs. Insurance covered everything. He recovered just fine.
Six months later, a heart attack killed Rajesh. The family got zero money. No life insurance meant no payout. His wife and kids couldn’t pay rent or school fees. Savings dried up in two years.
Example 2: Had life insurance, skipped health coverage
Priya bought a 50 lakh life insurance policy. Didn’t get health insurance. Then she got cancer. Treatment ran 18 lakhs over two years. She emptied her savings and borrowed heavily. Family drowned in debt.
Priya lived but went broke. Life insurance didn’t help because she didn’t die. She needed health insurance for those treatment bills.
Example 3: Had both policies
Amit bought both. Fell seriously ill. Treatment cost 12 lakhs. Health insurance paid it all. His savings stayed untouched.
Later, Amit died in an accident. Life insurance gave his family 1 crore. They cleared the home loan, paid for kids’ education, and handled daily costs.
Both policies kept the family intact.
The Cost of Having Both
People worry they can’t afford both. It’s actually not that expensive.
What a life insurance policy costs
A 30-year-old gets 1 crore coverage for maybe 12,000 to 15,000 rupees yearly. Works out to roughly 1,000 to 1,200 rupees monthly.
What health insurance costs
The same person gets 10 lakh family health coverage for 12,000 to 15,000 rupees yearly. Another 1,000 to 1,200 rupees each month.
Add them up: Around 24,000 to 30,000 rupees yearly. That’s 2,000 to 2,500 rupees monthly.
Now compare this to what happens without insurance. One hospital stay destroys 3 to 5 lakhs. One death leaves your family with zero income. Those premium amounts look tiny next to these risks.
Tax Benefits on Both
Both policies cut your tax bill.
Section 80C covers life insurance
Premiums up to 1.5 lakhs get you a tax deduction. Your taxable income drops.
Section 80D covers health insurance
Deduct up to 25,000 rupees for your family. Another 25,000 for parents. Are parents senior citizens? That becomes 50,000.
The money you get is tax-free
Life insurance payout? Tax-free. Health insurance claim? Tax-free. You keep every rupee.
These tax breaks make both policies worth even more.
Take Action Now
A life insurance policy and the benefits of health insurance in India work as a team. One protects your family after you die. The other protects you when medical emergencies hit.
Get quotes for both today. Check 3 different companies. Pick what fits your budget while giving you enough coverage.
Don’t pick one over the other. Get both. Your family deserves full protection, not half-measures.